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One Big Beautiful Bill Act (OBBBA) Loan Updates

The One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025, includes several changes to the regulations and limits for federal student loans. These changes impact federal loan limits, eliminate the Graduate PLUS loan program, and alter repayment options. 

These changes will affect continuing students and the Class of 2030 students in different ways.

Please note that in some cases, some aspects of the new law require additional clarity, and we anticipate more information will come from the Department of Education. We will monitor changes and update this page as additional information becomes available.

Continuing Students

The OBBBA changes only affect “new borrowers” after July 1, 2026. 

For this law, “new borrowers” are students who have no prior federal loans (Direct Unsubsidized or Graduate PLUS) for their DO program. 

That means that if you already have a Direct Unsubsidized or Graduate PLUS loan this year or in a previous year with VCOM, then you will be exempted from these changes—in other words, you’ll be “grandfathered.” For the next three years, if you have received Graduate Plus loans, you will still have access to Graduate PLUS loans, and your annual and aggregate federal loan limits will remain as they are now:

  • Current Annual Direct Unsubsidized Loan Limit
    • $44,944 for rising Class of 2029 students
    • $42,722 for rising Class of 2028 and Class of 2027 students
  • Current Aggregate Subsidized and Unsubsidized Combined Limit
    • $224,000 for all rising Classes
  • Current Annual Graduate PLUS Loan Limit
    • Cost of Attendance minus other financial aid
  • Current Aggregate Graduate PLUS Loan Limit
    • None

Please note that if you are a continuing student and you do not already have a Direct Unsubsidized or Graduate PLUS loan through VCOM, you may want to consider using a small loan this year to qualify for the exemption provision. Please contact the Financial Aid Office on your campus for more information.

Class of 2030 Students

The OBBBA considers all incoming students to be “new borrowers,” and you will be affected by these changes.

Direct Unsubsidized Loans 

Direct Unsubsidized loans to new borrowers will be subject to new limits:

  • New Annual Direct Unsubsidized Loan Limit: $50,000
  • New DO Degree Total Direct Unsubsidized Limit: $200,000
  • New Lifetime Aggregate Federal Student Loans Limit: $257,500 

An important note: The new Lifetime Aggregate Federal Student Loans Limit includes all federal student loans from all schools. That means that if you have already borrowed more than $57,500 in federal student loans before coming to VCOM, you will not be able to use the entire $200,000 DO Degree Limit for your VCOM degree. 

Your Lifetime Aggregate Federal Student Loans amount cannot be reduced by repaying part of your loans. All prior federal student loans count toward the limit, even if they are already repaid in full.

Graduate PLUS Loans will not be available to new borrowers; however, many private educational loans are available.

If you need loan money beyond the Direct Unsubsidized amount, you will need to secure a Private Education Loan. For more information about the process, including credit considerations and steps to take, view the Financial Aid Process page.

If you have questions about any of your financial aid options, please contact our Financial Aid Office on your campus.